EUR/USD: Euro surged on plunge in greenback and upbeat comments by Draghi

• Draghi is quite upbeat about prospect of EZ economy.
• Market may focus on Q4 German GDP and CPI tomorrow (Wednesday).

EUR/USD is now trading around 1.2353 in New York session, surged by almost 0.50% and so far made a high of 1.2370 on plunge in the greenback (US dollar) and some upbeat comments by ECB’s Draghi on prospects of European economy.

Today Draghi commented in a Twitter/Facebook question and answer session that “Europe has recovered from recession, but quality of employment in EZ (Euro Zone) must be improved. Now, significant progress has been made in many areas, making is better equipped for the future”.

Overall, EZ economy is firing all the cylinders and performing well. Thus it now seems that ECB is not concerned about strength of the currency (EUR) and eventual policy normalization. Over the last few months, ECB is increasingly shifting its focus from QE tapering to rate hikes.

Market will now focus on German GDP, CPI along with a deluge of other EU economic data tomorrow to check if the present ECB optimism is reflected by the real economy.

Basically, today EUR is being boosted by a plunge in dollar amid BOJ speculation of policy normalization and some confusion about Kuroda’s reappointment with BOJ. Also worries of higher US fiscal deficit after yesterday’s budget (infra) spending plan is negative for the USD.